Dalmia Bharat Q2 results: Profit jumps fivefold to Rs 239 crore on higher sales

Dalmia Bharat’s consolidated profit for the September quarter rose nearly five times compared to last year’s quarter to Rs 239 crore on the back of an improvement in operating performance and a low base last year.

The cement maker had reported a consolidated profit of Rs 49 crore in the year-ago period and Rs 395 crore in the June quarter.

Sales volume for the period rose 3% year-on-year to 6.9 million tonnes (mt), while consolidated operating profit was nearly 11% higher at Rs 3,417 crore. Earnings before interest, taxes, depreciation and amortization rose 60% year-on-year to Rs 696 crore.

The company reported its earnings during market hours and its shares closed at Rs 2,252.40 each on the BSE, up 1.2% from the previous close. It has also declared an interim dividend of Rs 4 per share.

While Dalmia Bharat saw energy, fuel and raw material costs rise compared to the previous year, logistics costs were lower, bringing the total cost per tonne down to Rs 3,960 from Rs 3,971 a year ago.

The overall cost per tonne remained stable despite the Tamil Nadu government imposing a mineral tax of Rs 160 per tonne on limestone, a raw material used in cement production. Higher year-on-year cement prices in the September quarter, meanwhile, helped net sales per tonne of cement improve to Rs 4,973, up 7.6% over the previous year. The combination of lower costs and higher realization increased the company’s EBITDA per tonne to Rs 1,013, an increase of 56% compared to the previous year. “Our 3.6 million tonne Umrangso clinker line commenced pilot production in September 2025 and should commence commercial production in the third quarter of FY26,” Dharmender Tuteja, chief financial officer of the company, said in a statement. “With a strong balance sheet and encouraging profitability prospects, we are making steady progress towards our vision of becoming a pan-India player.”

Dalmia Bharat is the fourth largest cement producer in the country with an annual production capacity of 49.5 million tonnes. The target is to have a capacity of 75 million tonnes by FY28, and several brownfield and greenfield expansions have been completed.

It had a net debt of Rs 1,602 crore at the end of the September quarter, compared to Rs 873 crore at the end of the June quarter. The net debt/EBITDA ratio rose to 0.56 times from 0.33 times a quarter ago.